Press Releases

DUBLIN, Ohio, March 9, 2010 — Terry Burnside, general manager and senior vice president responsible for Medicine Shoppe and Medicap Pharmacy operations, today issued the following statement in response to a lawsuit filed in U.S. District Court in the Southern District of Ohio by seven Medicine Shoppe and Medicap franchisees, purporting to represent a class:

Medicine Shoppe is dedicated to serving the needs of retail pharmacies and to helping them succeed. This has been true since 1970 when we began, and it is a value we hold sacred today. That’s why we have and will continue to provide franchisees with innovative services and support to help them focus on what they do best – care for their patients.

We are disappointed that these seven franchisees have taken steps to file a lawsuit that largely addresses past issues and makes claims that we believe have no merit.

As part of our ongoing commitment to support the success of franchisees, last year Medicine Shoppe proactively implemented new franchise agreement options for Medicine Shoppe International and Medicap franchisees. We openly sought and received substantial input from franchisees, and incorporated their feedback to create new franchise agreement options.

Because we respect our franchisees’ autonomy as business owners, Medicine Shoppe empowered franchisees to select which of the options made the most sense for their businesses, including the choice to stay with their current agreement. We firmly believe that our franchise options are fair and equitable and that franchisees were provided full opportunity to determine which option would be most beneficial for their business.

Since introducing the new franchise agreement options in July 2009, Medicine Shoppe International has seen renewed interest in opening additional Medicine Shoppe and Medicap Pharmacy locations. We believe this to be proof of the success of the new options, and we will continue to focus on delivering what we believe to be the industry’s best, most comprehensive array of tools and services to support the long-term success of retail pharmacies.

About Medicine Shoppe International
Medicine Shoppe International, Inc., a Cardinal Health (NYSE: CAH) company, is one of the largest franchisors of independent community pharmacies in the U.S. In 2003, Medicine Shoppe International acquired Medicap Pharmacies Incorporated, which franchises independent community pharmacies in the U.S. under the trade name Medicap Pharmacy^®. Medicine Shoppe^® and Medicap Pharmacy^® locations are distinguished for their commitment to providing expert, personalized health care.